In USA, for the patterns of default, differences between states as to “deficiency judgments”, should matter.

Wikipedia: “A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full.”

Sir, the default patterns Gillian Tett refers to in “Driven to default”, March 14 will, in the USA, of course much depend of in what state the defaults occur, given the great differences in allowing or not “Deficiency Judgments”

Has there been any research on this issue? Not that I know off. But that is not surprising given how the fundamental mistake with current risk weighted capital requirements has also been widely ignored.

@PerKurowski